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| (yiftee, 2014) |
Employee retention is vital factor for the survival of an organization.
This became a challenging one for most of the organization in the current
dynamic environment (Ramlall, 2004). Organizations recruit competent employees
and, invest time and money for the development of employee. When an employee leaves
an organization, there is an associated cost for the organization. But it is
difficult measure and value it. Ramlall (2004) stated that the average company
loses approximately $1 million with every 10 managerial and professional
employees who leave the organization. In other words, when direct and indirect
costs are combined, the total turnover cost of a relieved employee is between one
and two years’ pay and benefits.
There is substantial
economic impact to the organization when losing any of its critical employees.
When an employee leaves from an organization, all the knowledge about the
company, stake holders, projects etc go with employee to competitor. This is
the knowledge that is used to attract and satisfy the desires and expectations
of organization’s customers. Toracco (2000) stated that most of the
organizations now accepts that the knowledge as one of their most valuable
asset, but it lacks a system to retain and control the value of knowledge.
Moreover, company must incur additional costs on advertising, screening,
verifying credentials, interviewing and training etc. to fill the vacant position.
It is crucial
for an organization to develop an environment within the organization to
motivate employees to stay in the organization. Motivation as defined by
Robbins (1993) is the “willingness to exert high levels of effort toward
organizational goals, conditioned by the effort’s ability to satisfy some
individual need”. According Yamamoto (2011), unsatisfied needs drive the
individuals. These unsatisfied needs make individuals to find alternative ways
to satisfy them (eg: finding new jobs etc).
There are various human resource
practices employed by the organization to retain the employees (Khan et al.,
2014). The HR must know how to attract and keep good employees because these
are the employees who can make or break the organization’s goodwill (Wisnefski,
2008). According to Haider et al. (2015), the decision of an employee to stay
in the organization is mainly influenced by;
- Personal factors (individual’s age, the family situation etc )
- Opportunities for training and career development
- Networking, external job market or job title
- Remuneration and employee benefits
Conclusion
Talented and
good employees are asset of an organization. Retaining talented employees is
highly important for the long-term growth as well as success of the business. Thus,
it is necessary to retain the talented employees not because of the costs
incurred on them by employers, but also because of the required output they
give to the organization.
References
Haider, M.,
Rasli, A., Akhtar, C., Yusoff, R., Malik, O. and Aamir, A. (2015) 'The Impact
of Human Resource Practices on Employee Retention in the Telecom Sector', International Journal of Economics and Financial Issues, 5(Special Issue),
pp.63-69.Khan, F., Yusoff, R.M. and Khan, A. (2014) 'Effect of human resource practices on job satisfaction in Pakistan', Sains Humanika, 1(1), 5.
Ramlall, S. (2004) 'A Review of Employee Motivation Theories and their Implications for Employee Retention within Organizations', The Journal of American Academy of Business, Cambridge, (September), pp.52-63.
Robbins, S. (1993) Organizational Behavior. Sixth Edition. Englewood Cliffs: Prentice-Hall.
Torraco, R. (2000) 'A Theory of Knowledge Management', Advances in Developing Human Resources, 2(1), pp.38-62.
Wisnefski, M. (2008) 'Employee retention in the new millennium', Business Services, 16(3), 465-507.
Yamamoto, H. (2011) 'The relationship between employee benefit management and employee retention', The International Journal of Human Resource Management, 22(17), 3550-3564.
yiftee (2014) Keys to Retaining your MVPs. Available at: https://yiftee.com/keys-to-retaining-your-mvps/ (Accessed: 31 Oct. 2019).
Good job. You have explained well on your topic.
ReplyDeleteGreat 👍 In overall the points are detailed and well explained.
ReplyDeleteGood article.
ReplyDeleteAn important topic. Clearly explained with good references. Good luck
ReplyDeleteA nice and descriptive one. Nicely done.
ReplyDeleteThanks so much, this is perfect! So much detailed information!
ReplyDeleteGood artical. Clearly explained the value of a talented and experienced employee. Than you.
ReplyDeleteWhat happen when you invest so much money and time on an employee and he left the organization for a simple reason?? and you will be vulnerable if he go to your competitor right?? you have clearly explain the value of retention, retaining top talent should be leaders prime target
ReplyDeleteWell written and Detailed account of the basic of employee retention given in this blog. Have t thought about the most important for your field?
ReplyDeleteYou need to pay attention to word count as well for improving further.
Employee relations are not just about the utilisation of human resources but the experiences and expectations of labour in the workplace and wider society.
ReplyDeleteOver time, employees tend to improve in their work and grow with the business; their value increases the more they are with you. They also save you on the costs of hiring and training new staff, and your business and culture become more stable with less turnover.
ReplyDeleteThe retention of a positive and motivated employee is very important for the organization's success. Structural elements such as brand reputation, market positioning, company purpose, and growth strategy strongly influence an employee's decision to stay with a company.
ReplyDelete